The Cost Efficiency Analysis of Commercial Banks in Hong Kong

This research aims to examine the cost efficiency of the top 30 commercial banks, ranked by total assets, in the Hong Kong banking sector over the period of 5 years from 2014 to 2018. Besides, it also provides an insight into the relationship between bank size and cost efficiency. By employing the s...

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Main Author: Tang, Ling
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/58549/
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author Tang, Ling
author_facet Tang, Ling
author_sort Tang, Ling
building Nottingham Research Data Repository
collection Online Access
description This research aims to examine the cost efficiency of the top 30 commercial banks, ranked by total assets, in the Hong Kong banking sector over the period of 5 years from 2014 to 2018. Besides, it also provides an insight into the relationship between bank size and cost efficiency. By employing the stochastic frontier approach, this paper chooses three prices as inputs, including the cost of borrowed funds (p1), cost of labour (p2) and Cost of operating expenses (p3); and uses three variables as outputs, namely Gross loans (y1), off-balance sheet items (y2) and other earning assets (y3), respectively. This research found that, on average, the cost efficiency of these selected commercial banks was about 86 percent during the research period. Besides, in the context of the Hong Kong banking system, large banks were found to be less efficient than relatively small banks.
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spelling nottingham-585492022-12-08T09:27:58Z https://eprints.nottingham.ac.uk/58549/ The Cost Efficiency Analysis of Commercial Banks in Hong Kong Tang, Ling This research aims to examine the cost efficiency of the top 30 commercial banks, ranked by total assets, in the Hong Kong banking sector over the period of 5 years from 2014 to 2018. Besides, it also provides an insight into the relationship between bank size and cost efficiency. By employing the stochastic frontier approach, this paper chooses three prices as inputs, including the cost of borrowed funds (p1), cost of labour (p2) and Cost of operating expenses (p3); and uses three variables as outputs, namely Gross loans (y1), off-balance sheet items (y2) and other earning assets (y3), respectively. This research found that, on average, the cost efficiency of these selected commercial banks was about 86 percent during the research period. Besides, in the context of the Hong Kong banking system, large banks were found to be less efficient than relatively small banks. 2019-09-05 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/58549/1/dissertation%20final%20version.pdf Tang, Ling (2019) The Cost Efficiency Analysis of Commercial Banks in Hong Kong. [Dissertation (University of Nottingham only)]
spellingShingle Tang, Ling
The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title_full The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title_fullStr The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title_full_unstemmed The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title_short The Cost Efficiency Analysis of Commercial Banks in Hong Kong
title_sort cost efficiency analysis of commercial banks in hong kong
url https://eprints.nottingham.ac.uk/58549/